KRS 157.620: School district participation requirements.

(1) To participate in the school construction funding program, the district must have

unmet needs as defined by KRS 157.615 and must meet the following eligibility

criteria:

(a) Commit at least an equivalent tax rate of five cents ($0.05) to debt service,

new facilities, or major renovations of existing school facilities as defined by

KRS 157.440. A district that levies the five cents ($0.05) and has not accepted

an official offer of assistance from the School Facilities Construction

Commission, made pursuant t o KRS 157.611, may use receipts from the levy

for other purposes as determined by the district board of education.

(b) On July 1 of odd-numbered years, the district board of education shall restrict

all available local revenue, as defined by KRS 157.615, f or school building

construction, to be utilized in accordance with the priorities determined by the

most current school facilities plan approved by the Kentucky Board of

Education.

(2) Interest earned on restricted funds required by this section shall beco me a part of

the restricted funds.

(3) Funds restricted by the requirements of this section may be used by the district for

projects or a portion thereof as listed in priority order on the approved school

facilities plan prior to receiving state funds. Any local school district which is not

an eligible district may be permitted, upon written application to the Department of

Education, to transfer funds restricted by KRS 157.611 to 157.640 for other school

purposes.

(4) Not later than October 15 of the year immediately preceding an even -numbered

year regular session of the General Assembly, the Kentucky Board of Education

shall submit a statement to the School Facilities Construction Commission

certifying the following in each district:

(a) The amount of school facility construction needs in each district;

(b) The amount of available local revenue in each district; and

(c) That the district has or has not met the eligibility criteria established by

subsection (1) of this section.

(5) Construction needs shall b e those needs specified in the school facilities plan

approved by the Kentucky Board of Education as of June 30 of the year preceding

an even-numbered year regular session of the General Assembly.